MOLDOVA: insurers might lose their right to issue Green Card policies

6 January 2020 —
The Green Card System Monitoring Committee will decide in the nearest time whether Moldova will be excluded from the international insurance system, Valeriu CHITAN announced.

Valeriu CHITAN, Chairman of the Board of Directors, National Commission for Financial Markets from Republic of Moldova (CNPF), informed on January 3 at the meeting called by the prime minister that the main reason for such a measure is the lack of confidence in Moldovan insurance companies coming from international partners.

The CNPF President noted that the lack of confidence stems from the fact that many Moldovan insurance companies, issuers of Green Card policies, are undercapitalized and record withholdings and arrears on payments for insured events, which is why Moldova has been monitored in the last 3 years.

The total number of Green Card issuers in Moldova is 9 right now and, according to CHITAN, some of them will lose their right to issue international insurance certificates in the next period.

One of the proposed solutions to stay in the system was to create a guarantee fund. Until the fund takes form, the insurance market participants need to obtain sufficient bank guarantee as a backup to recover the credibility of the international Green Card system.